Indian Overseas Bank has reported a steep increase in its net loss at ₹971 crore for the quarter ended December 31, 2017, against a net loss of ₹554 crore in the year-ago period.
Higher provisions and drop in incomes dented the bottomline of the Chennai-based public sector bank during the third quarter.
Operating profit declined to ₹684.77 crore (₹854.64 crore in the year-ago period). Provisions and contingencies were higher at ₹1,640 crore (₹1,406 crore).
Interest income fell to ₹4,254 crore (₹4,881 crore). However, other income grew to ₹808 crore (₹718 crore), despite challenging treasury market conditions.
The gross NPA (non-performing asset) ratio declined to 21.95 per cent from 22.42 per cent in Q3 of the previous fiscal and 22.73 per cent in Q2 of this fiscal.
The net NPA ratio fell to 13.08 per cent from 14.32 per cent in the year-ago quarter and 13.86 per cent in the preceding quarter.
The bank restricted the slippages to ₹1,432 crore in the December quarter, compared with ₹1,892 crore in the year-ago quarter and ₹2,099 crore in Q2 of this fiscal.
It recovered ₹3,021 crore in the December quarter, and during the three quarters of this fiscal it recovered more than ₹9,000 crore.
“As we move forward, our intent is to reduce slippages by 25 per cent and increase recoveries by 25 per cent,” said R Subramaniakumar, Managing Director and CEO of IOB.
With NPAs under control, the thrust will be on growing income levels by focussing on MSME, retail and agriculture areas with improved processes and attractive schemes.
“The baseline has been strengthened and now it is the question of leveraging, and 2017-18 will be a much better year for IOB,” he said.
The Centre has announced a capital infusion of ₹4,694 crore for IOB during 2017-18.